Circle stock drops nearly 20% as CLARITY Act draft restricts stablecoin yields and rewards

Circle shares fell nearly 20% on Tuesday following new details from a Senate compromise tied to the Digital Asset Market Clarity Act (CLARITY), which could limit yield payments on stablecoin balances. Circle shares fell nearly 20% on Tuesday following new details from a Senate compromise tied to the Digital Asset Market Clarity Act (CLARITY), which could limit yield… Circle shares fell nearly 20% on Tuesday following new details from a Senate compromise tied to the Digital Asset Market Clarity Act (CLARITY), which could limit yield payments on stablecoin balances. Circle shares plunged nearly 20% after the CLARITY Act draft restricted stablecoin yields and rewards programs.Lawmakers are reportedly looking to ban platforms from offering any yield directly or indirectly on stablecoin holdings.ZachXBT revealed that Circle froze 16 unrelated hot wallets in an undisclosed civil case, despite clear high-volume operational activity.Circle shares fell nearly 20% on Tuesday following new details from a Senate compromise tied to the Digital Asset Market Clarity… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.